[SMM Analysis] interpretation of Aluminum-related products in the list of refund and tax rates for some products adjusted by the Ministry of Finance

SMM, Oct. 26: recently, the Ministry of Finance issued a notice on adjusting the tax refund rate for some products, which involves aluminum-related products as follows: 1. Tax code 37013022 "unexposed photographic plate making PS version" and tax code 37013024 "unexposed photographic plate making CTP version", the refund rate of these two types of products increased from 13% to 16%. For aluminum foil products under tariff number 7607, the refund rate has been raised from 15 per cent to 16 per cent.

The refund tax rate of aluminum foil will be increased by 1 percentage point, reflecting that the export profit of aluminum foil products will increase by about 200 yuan per ton.According to customs data, the export volume of aluminum foil in 2017 will be 1.163 million tons, although the amount of aluminum foil out of the warehouse this year will be affected by the "double negative" of the United States. But with a weaker renminbi, an all-time low in Shanghai and London and an increase in export tax rebates, SMM expects aluminum foil exports to reach 1.27 million tons in 2018.

On the other hand, the base material of the unexposed photographic plate making PS/CTP version is mainly 1 series aluminum alloy plate, and the two products have been in the process of replacing the PS version with the CTP version in the past decade. At present, the market share of the CTP version is more than 90%. SMM estimates that the total export volume of the two products will not exceed 200000 tons.

The increase in the tax rebate rate is bound to boost the export enthusiasm of aluminum foil and some aluminum strip manufacturers, but from a macro point of view, due to volume reasons, the contribution to China's overall aluminum consumption is limited.

The official text of the Ministry of Finance is as follows:

Circular on adjusting the Export tax rebate rate for some products

Finance and Taxation (2018) No. 123

The financial departments (bureaus) of all provinces, autonomous regions, municipalities directly under the Central Government and municipalities separately listed on the State plan, the tax bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and municipalities separately listed on the State Administration of Taxation, and the Finance Bureau of the Xinjiang production and Construction Corps:

In order to further simplify the tax system and improve the export tax rebate policy, the export tax rebate rate of value-added tax for some products should be adjusted. The relevant matters are hereby notified as follows:

First, the export tax rebate rate for photo paper film, plastic products, bamboo flooring, straw and rattan woven products, toughened safety glass, lamps and lanterns and other products will be raised to 16%.

The export tax rebate rate for lubricants, aircraft tires, carbon fiber and some metal products will be raised to 13%.

The export tax rebate rate for some agricultural products, bricks, tiles, glass fiber and other products will be raised to 10%.

The list of products to increase the export tax rebate rate in this article is set out in the annex.

2. Cancel the export tax rebate for soybean meal.

Soybean meal refers to the product code of 23040010, 23040090.

3. With the exception of the products referred to in articles 1 and 2 of this Circular, for other export products, where the original export tax rebate rate is 15%, the export tax rebate rate shall be increased to 16%; if the original export tax rebate rate is 9%, the export tax rebate rate shall be increased to 10%; Where the original export tax rebate rate is 5%, the export tax rebate rate will be raised to 6%.

IV. This Circular shall enter into force as of November 1, 2018. The export tax rebate rate applicable to the goods listed in this circular shall be defined by the export date indicated on the customs declaration form for export goods.

Attachment download:

List of products to increase export tax rebate rate .xls

(Wang Rui 021 51666833)